Disposition of Balance Recorded in Account 1562 D 5-17 Richmond Hill 200… · Disposition of...

Disposition of Balance Recorded in Account 1562 D

Distributor PowerStream Inc. - Richmond Hill

OEB File Number 0

Filing Year 2001

EB-2012-0161 Appendix 5 Schedule 5-17 of 74 Filed: May 4, 2012

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A B C DPILs TAXESREGULATORY INFORMATION (REGINFO)Utility Name: PowerStream Inc. - Richmond Hill Colour CodeReporting period: 2001 Input Cell

Formula in CellDays in reporting period: 92 daysTotal days in the calendar year: 365 days

BACKGROUNDHas the utility reviewed section 149(1) ITA to confirm that it is not subject to regular corporate tax (and therefore subject to PILs)? Y/N Y

Was the utility recently acquired by Hydro One and now subject to s.89 & 90 PILs? Y/N N

Is the utility a non-profit corporation? Y/N N(If it is a non-profit corporation, please contact the Rates Manager at the OEB)

OCT Y/N N

LCT Y/N NOCTLCT

Accounting Year End Date 31-Dec-01

MARR NO TAX CALCULATIONSSHEET #7 FINAL RUD MODEL DATA(FROM 1999 FINANCIAL STATEMENTS)USE BOARD-APPROVED AMOUNTS

Rate Base (wires-only) 104,354,290

Common Equity Ratio (CER) 45.00%

1-CER 55.00%

Target Return On Equity 9.88%

Debt rate 7.00%

Market Adjusted Revenue Requirement 8,657,232

1999 return from RUD Sheet #7 2,530,302

Total Incremental revenue 6,126,930Input: Board-approved dollar amounts phased-in Amount allowed in 2001 2,042,310 Amount allowed in 2002 Amount allowed in 2003 and 2004 (will be zero due to Bill 210 unless authorized by the Minister and the Board) Amount allowed in 2005 - Third tranche of MARR re: CDM Other Board-approved changes to MARR or incremental revenue

Total Regulatory Income

Equity 46,959,431

Return at target ROE 4,639,592

Debt 57,394,860

Deemed interest amount in 100% of MARR 4,017,640

Phase-in of interest - Year 1 (2001) 2,122,054 ((D43+D47)/D41)*D61Phase-in of interest - Year 2 (2002) 2,122,054 ((D43+D47+D48)/D41)*D61Phase-in of interest - Year 3 (2003) and forward 2,122,054 ((D43+D47+D48)/D41)*D61 (due to Bill 210)Phase-in of interest - 2005 4,017,640

Please identify the % used to allocate the OCT and LCT exemptions in Cells C65 & C74 in the TAXCALC spreadsheet.

Are the Ontario Capital Tax & Large Corporations Tax Exemptions shared among the corporate group?

REGINFO


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4849505152535455565758596061626364656667686970717273747576777879808182838485

A B C D E F G HPILs TAXES ITEM Initial M of F M of F Tax PILs DEFERRAL AND VARIANCE ACCOUNTS Estimate Filing Filing ReturnsTAX CALCULATIONS (TAXCALC) Variance Variance("Wires-only" business - see Tab TAXREC) K-C Explanation

0 Version 2009.1Utility Name: PowerStream Inc. - Richmond HillReporting period: 2001

ColumnDays in reporting period: 92 days BroughtTotal days in the calendar year: 365 days From

TAXREC$ $ $

I) CORPORATE INCOME TAXES

Regulatory Net Income REGINFO E53 1 1,143,153 -3,214,368 -2,071,215

BOOK TO TAX ADJUSTMENTSAdditions:Depreciation & Amortization 2 1,384,047 -374,517 1,009,530Employee Benefit Plans - Accrued, Not Paid 3 18,351 18,351Tax reserves - beginning of year 4 41,566 41,566Reserves from financial statements - end of year 4 3,678 3,678Regulatory Adjustments - increase in income 5 0 0Other Additions (See Tab entitled "TAXREC") "Material" Items from "TAXREC" worksheet 6 0 0 Other Additions (not "Material") "TAXREC" 6 0 0 "Material Items from "TAXREC 2" worksheet 6 1,817,102 1,817,102 Other Additions (not "Material") "TAXREC 2" 6 0 0

Items on which true-up does not apply "TAXREC 3" 5,966 5,966

Deductions: Input positive numbersCapital Cost Allowance and CEC 7 538,732 397,614 936,346Employee Benefit Plans - Paid Amounts 8 2,717 2,717Items Capitalized for Regulatory Purposes 9 0 0Regulatory Adjustments - deduction for tax purposes in Item 5 10 0 0Interest Expense Deemed/ Incurred 11 530,513 -177,235 353,279Tax reserves - end of year 4 3,678 3,678Reserves from financial statements - beginning of year 4 41,566 41,566Contributions to deferred income plans 3 0 0Contributions to pension plans 3 0 0Interest capitalized for accounting but deducted for tax 11 0 0Other Deductions (See Tab entitled "TAXREC") "Material" Items from "TAXREC" worksheet 12 0 0 Other Deductions (not "Material") "TAXREC" 12 0 0 Material Items from "TAXREC 2" worksheet 12 1,817,102 1,817,102 Other Deductions (not "Material") "TAXREC 2" 12 0 0

Items on which true-up does not apply "TAXREC 3" 83,562 83,562

TAXABLE INCOME/ (LOSS) 1,457,955 (3,871,227) Before loss C/F (2,413,272)

BLENDED INCOME TAX RATETab Tax Rates - Regulatory from Table 1; Actual from Table 3 13 40.62% -40.6203% 0.00%

REGULATORY INCOME TAX 592,221 -592,213 Actual 8

Miscellaneous Tax Credits 14 0 Actual 0

Total Regulatory Income Tax 592,221 -592,213 Actual 8

II) CAPITAL TAXES

OntarioBase 15 104,354,290 12,250,406 116,604,696Less: Exemption -Tax Rates - Regulatory, Table 1; Actual, Table 3 16 5,000,000 0 5,000,000Taxable Capital 99,354,290 12,250,406 111,604,696

Rate - Tax Rates - Regulatory, Table 1; Actual, Table 3 17 0.3000% 0.0000% 0.3000%

Ontario Capital Tax 74,516 9,876 Overpaid 84,391

Federal Large Corporations TaxBase 18 104,354,290 12,817,515 117,171,805Less: Exemption -Tax Rates - Regulatory, Table 1; Actual, Table 3 19 10,000,000 0 10,000,000Taxable Capital 94,354,290 12,817,515 107,171,805

Rate - Tax Rates - Regulatory, Table 1; Actual, Table 3 20 0.2250% 0.0000% 0.2250%

Gross Amount of LCT before surtax offset (Taxable Capital x Rate) 53,074 7,705 60,780Less: Federal Surtax 1.12% x Taxable Income 21 16,329 -16,329 0

Net LCT 36,745 24,034 60,780

TAXCALC


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TAXREC$ $ $

868788899091929394959697

9899

100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133

134135

136137138139140141142143144145146147148149

III) INCLUSION IN RATES

Income Tax Rate used for gross- up (exclude surtax) 39.50%

Income Tax (proxy tax is grossed-up) 22 978,878 Actual 2001 8LCT (proxy tax is grossed-up) 23 60,736 Actual 2001 60,780Ontario Capital Tax (no gross-up since it is deductible) 24 74,516 Actual 2001 84,391

Total PILs for Rate Adjustment -- MUST AGREE WITH 2002 25 1,114,130 Actual 2002 145,179 RAM DECISION

IV) FUTURE TRUE-UPS IV a) Calculation of the True-up Variance DR/(CR)

In Additions:Employee Benefit Plans - Accrued, Not Paid 3 18,351Tax reserves deducted in prior year 4 41,566Reserves from financial statements-end of year 4 3,678Regulatory Adjustments 5 0Other additions "Material" Items TAXREC 6 0Other additions "Material" Items TAXREC 2 6 1,817,102In Deductions - positive numbersEmployee Benefit Plans - Paid Amounts 8 2,717Items Capitalized for Regulatory Purposes 9 0Regulatory Adjustments 10 0Interest Adjustment for tax purposes (See Below - cell I204) 11 0Tax reserves claimed in current year 4 3,678Reserves from F/S beginning of year 4 41,566Contributions to deferred income plans 3 0Contributions to pension plans 3 0Other deductions "Material" Items TAXREC 12 0Other deductions "Material" Item TAXREC 2 12 1,817,102

Total TRUE-UPS before tax effect 26 = 15,634

Income Tax Rate (including surtax) from 2001 Utility's tax return x 40.62%

Income Tax Effect on True-up adjustments = 6,351

Less: Miscellaneous Tax Credits 14 0

Total Income Tax on True-ups 6,351

Income Tax Rate used for gross-up (exclude surtax) 39.50%

TRUE-UP VARIANCE ADJUSTMENT 10,497

IV b) Calculation of the Deferral Account Variance caused by changes in legislation

REGULATORY TAXABLE INCOME /(LOSSES) (as reported in the initial estimate column) = 1,457,955

REVISED CORPORATE INCOME TAX RATE (including Surtax) x 40.62%

REVISED REGULATORY INCOME TAX = 592,221

Less: Revised Miscellaneous Tax Credits - 0

Total Revised Regulatory Income Tax = 592,221

Less: Regulatory Income Tax reported in the Initial Estimate Column (Cell C58) - 592,221

Regulatory Income Tax Variance = 0

TAXCALC


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TAXREC$ $ $

150151152153154155156157158159160161162163164165166167168169170171172173174175176177178179180181182183184

185186187188

189190191192193194195196197198199200201202203204205206207208209210211

Ontario Capital TaxBase = 104,354,290Less: Exemption from tab Tax Rates, Table 2, cell C39 - 5,000,000Revised deemed taxable capital = 99,354,290

Rate - Tab Tax Rates cell C54 x 0.3000%

Revised Ontario Capital Tax = 75,128Less: Ontario Capital Tax reported in the initial estimate column (Cell C70) - 74,516Regulatory Ontario Capital Tax Variance = 612

Federal LCTBase 104,354,290Less: Exemption from tab Tax Rates, Table 2, cell C40 - 10,000,000Revised Federal LCT = 94,354,290

Rate (as a result of legislative changes) tab 'Tax Rates' cell C51 0.2250%

Gross Amount 53,511Less: Federal surtax - 16,329Revised Net LCT = 37,181

Less: Federal LCT reported in the initial estimate column (Cell C82) - 36,745Regulatory Federal LCT Variance = 436

Actual Income Tax Rate used for gross-up (exclude surtax) 39.50%

Income Tax (grossed-up) + 0LCT (grossed-up) + 721Ontario Capital Tax + 612

DEFERRAL ACCOUNT VARIANCE ADJUSTMENT = 1,333

TRUE-UP VARIANCE (from cell I130) + 10,497

Total Deferral Account Entry (Positive Entry = Debit) = 11,830(Deferral Account Variance + True-up Variance)

V) INTEREST PORTION OF TRUE-UPVariance Caused By Phase-in of Deemed Debt

Total deemed interest (REGINFO) 4,017,640Interest phased-in (Cell C36) 2,122,054

Variance due to phase-in of debt component of MARR in rates 1,895,587 according to the Board's decision

Other Interest Variances (i.e. Borrowing Levels Above Deemed Debt per Rate Handbook)Interest deducted on MoF filing (Cell K36+K41) 353,279Total deemed interest (REGINFO CELL D61) 1,004,410

Variance caused by excess debt 0

Interest Adjustment for Tax Purposes (carry forward to Cell I110) 0

Total Interest Variance 1,895,587

TAXCALC


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545556575859606162636465

6667686970

A B C D E FPILs TAXES LINE M of F Non-wires Wires-onlyTAX RETURN RECONCILIATION (TAXREC) Corporate Eliminations Tax(for "wires-only" business - see s. 72 OEB Act) Tax Return

0 ReturnVersion 2009.1

Section A: Identification:Utility Name: PowerStream Inc. - Richmond HillReporting period: 2001Taxation Year's start date:Taxation Year's end date:Number of days in taxation year: 92 days

Please enter the Materiality Level : 117,399 < - enter materiality level (0.25% x Rate Base x CER) Y/N Y (0.25% x Net Assets) Y/N N Or other measure (please provide the basis of the amount) Y/N NDoes the utility carry on non-wires related operation? Y/N N(Please complete the questionnaire in the Background questionnaire worksheet.)

Note: Carry forward Wires-only Data to Tab "TAXCALC" Column K

Section B: Financial statements data: Input unconsolidated financial statement data submitted with Tax returns.The actual categories of the income statements should be used. If required please change the descriptions except for amortization, interest expense and provision for income tax

Please enter the non-wire operation's amount as a positive number, the program automatically treats all amounts in the "non-wires elimination column" as negative values in TAXREC and TAXREC2.

Income: Energy Sales + 0 Distribution Revenue + 0 Other Income + 0 Miscellaneous income + 0

+ 0Revenue should be entered above this line

Costs and Expenses: Cost of energy purchased - 0 Administration - 1,061,685 1,061,685 Customer billing and collecting - 0 Operations and maintenance - 0 Amortization - 1,009,530 1,009,530 Ontario Capital Tax - 0 Reg Assets - 0Municipal property taxes - 0Federal LCT - 0

- 0

Net Income Before Interest & Income Taxes EBIT = -2,071,215 0 -2,071,215Less: Interest expense for accounting purposes - 353,279 353,279 Provision for payments in lieu of income taxes - 60,000 60,000Net Income (loss) = -2,484,494 0 -2,484,494 -2484494(The Net Income (loss) on the MoF column should equal to the net income (loss) per financial statements on Schedule 1 of the tax return. )

Section C: Reconciliation of accounting income to taxable incomeFrom T2 Schedule 1BOOK TO TAX ADDITIONS: Provision for income tax + 60,000 0 60,000Federal large corporation tax + 0Depreciation & Amortization + 1,009,530 0 1,009,530Employee benefit plans-accrued, not paid + 18,351 0 18,351Tax reserves - beginning of year + 41,566 0 41,566Reserves from financial statements- end of year + 3,678 0 3,678Regulatory adjustments on which true-up may apply (see A66) + 0

Items on which true-up does not apply "TAXREC 3" 5,966 0 5,966

Material addition items from TAXREC 2 + 1,817,102 0 1,817,102Other addition items (not Material) from TAXREC 2 + 0 0 0

Subtotal 2,956,193 0 2,956,193

TAXREC


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7172737475767778798081828384858687888990919293949596979899100101102103104105106107

108109110111112113114115116117118119120121122123124125126127128129130131132133134135136

Other Additions: (Please explain the nature of the additions)Recapture of CCA + 0Non-deductible meals and entertainment expense + 0Capital items expensed + 0DEPRECIATION DIFFERENCE + 0

+ 0+ 0+ 0

Total Other Additions = 0 0 0

Total Additions = 2,956,193 0 2,956,193

Recap Material Additions: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total Other additions >materiality level 0 0 0Other additions (less than materiality level) 0 0 0Total Other Additions 0 0 0

BOOK TO TAX DEDUCTIONS: Capital cost allowance - 885,525 885,525Cumulative eligible capital deduction - 50,821 50,821Employee benefit plans-paid amounts - 2,717 2,717Items capitalized for regulatory purposes - 0Regulatory adjustments : - 0 CCA - 0 other deductions - 0Tax reserves - end of year - 3,678 0 3,678Reserves from financial statements- beginning of year - 41,566 0 41,566Contributions to deferred income plans - 0Contributions to pension plans - 0

Items on which true-up does not apply "TAXREC 3" 83,562 0 83,562

Interest capitalized for accounting deducted for tax - 0Material deduction items from TAXREC 2 - 1,817,102 0 1,817,102Other deduction items (not Material) from TAXREC 2 - 0 0 0

Subtotal = 2,884,971 0 2,884,971Other deductions (Please explain the nature of the deductions)Charitable donations - tax basis - 0Gain on disposal of assets - 0

- 00

- 0 Total Other Deductions = 0 0 0

Total Deductions = 2,884,971 0 2,884,971

Recap Material Deductions: 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0Total Other Deductions exceed materiality level 0 0 0Other Deductions less than materiality level 0 0 0Total Other Deductions 0 0 0

TAXABLE INCOME = -2,413,272 0 -2,413,272DEDUCT: Non-capital loss applied positive number - 0

TAXREC


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137138139140141142143144145146147148149150151152153154155156157158159160161162

Net capital loss applied positive number - 00

NET TAXABLE INCOME = (2,413,272) 0 (2,413,272)

FROM ACTUAL TAX RETURNSNet Federal Income Tax (Must agree with tax return) + 8 8Net Ontario Income Tax (Must agree with tax return) + 0 Subtotal = 8 0 8Less: Miscellaneous tax credits (Must agree with tax returns) - 0 0Total Income Tax = 8 0 8

FROM ACTUAL TAX RETURNSNet Federal Income Tax Rate (Must agree with tax return) 0.00% 0.00%Net Ontario Income Tax Rate (Must agree with tax return) 0.00% 0.00% Blended Income Tax Rate 0.00% *************** 0.00%

Section F: Income and Capital Taxes

RECAP Total Income Taxes + 8 0 8Ontario Capital Tax + 84,391 84,391Federal Large Corporations Tax + 60,780 60,780

Total income and capital taxes = 145,179 0 145,179

TAXREC


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A B C D E FPILs TAXES LINE M of F Non-wires Wires-onlyTax and Accounting Reserves Corporate Eliminations TaxFor MoF Column of TAXCALC Tax Return(for "wires-only" business - see s. 72 OEB Act) Return

0 Version 2009.1

Utility Name: PowerStream Inc. - Richmond HillReporting period: 2001

TAX RESERVES

Beginning of Year:0

Reserve for doubtful accounts ss. 20(1)(l) 41,566 41,566Reserve for goods & services ss.20(1)(m) 0Reserve for unpaid amounts ss.20(1)(n) 0Debt and share issue expenses ss.20(1)(e) 0Other - Please describe 0Other - Please describe 0

00

Total (carry forward to the TAXREC worksheet) 41,566 0 41,566

End of Year:0

Reserve for doubtful accounts ss. 20(1)(l) 3,678 3,678Reserve for goods & services ss.20(1)(m) 0Reserve for unpaid amounts ss.20(1)(n) 0Debt and share issue expenses ss.20(1)(e) 0Other - Please describe 0Other - Please describe 0

00

Insert line above this lineTotal (carry forward to the TAXREC worksheet) 3,678 0 3,678

FINANCIAL STATEMENT RESERVES

Beginning of Year:00

Environmental 0Allowance for doubtful accounts 41,566 41,566Inventory obsolescence 0Property taxes 0OPEB 0Other - Please describe 0

0Total (carry forward to the TAXREC worksheet) 41,566 0 41,566

End of Year:00

Environmental 0Allowance for doubtful accounts 3,678 3,678Inventory obsolescence 0Property taxes 0OPEB 0Regulatory Reserves 0

0Insert line above this lineTotal (carry forward to the TAXREC worksheet) 3,678 0 3,678

Tax Reserves


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A B C D E F

PILs TAXES LINE M of F Non-wires Wires-onlyTAX RETURN RECONCILIATION (TAXREC 2) Corporate Eliminations Tax(for "wires-only" business - see s. 72 OEB Act) Tax ReturnRATEPAYERS ONLY ReturnShareholder-only Items should be shown on TAXREC 3 Version 2009.1

Utility Name: PowerStream Inc. - Richmond HillReporting period: 2001Number of days in taxation year: 92Materiality Level: 117,399

Section C: Reconciliation of accounting income to taxable incomeAdd:

+ 0Gain on sale of eligible capital property + 0Loss on disposal of assets + 0Charitable donations (Only if it benefits ratepayers) + 0Taxable capital gains + 0

+ 0Scientific research expenditures deducted + 0 per financial statements + 0Capitalized interest + 0Soft costs on construction and renovation of buildings + 0Capital items expensed + 0Debt issue expense + 0Financing fees deducted in books + 0Gain on settlement of debt + 0Interest paid on income debentures + 0Recapture of SR&ED expenditures + 0Share issue expense + 0Write down of capital property + 0Amounts received in respect of qualifying environment trust + 0Provision for bad debts + 0Funds from Dev + 1,817,102 1,817,102

+ 0+ 0

Other Additions: (please explain in detail the nature of the item) + 0+ 0+ 0+ 0+ 0+

Total Additions = 1,817,102 0 1,817,102

Recap of Material Additions: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,817,102 0 1,817,102Funds from Dev 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TAXREC 2


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A B C D E F

PILs TAXES LINE M of F Non-wires Wires-onlyTAX RETURN RECONCILIATION (TAXREC 2) Corporate Eliminations Tax(for "wires-only" business - see s. 72 OEB Act) Tax ReturnRATEPAYERS ONLY ReturnShareholder-only Items should be shown on TAXREC 3 Version 2009.1

Utility Name: PowerStream Inc. - Richmond HillReporting period: 2001Number of days in taxation year: 92Materiality Level: 117,399

75767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122

0 0 0 0 0 0Total Material additions 1,817,102 0 1,817,102Other additions less than materiality level 0 0 0Total Additions 1,817,102 0 1,817,102

Deduct:Gain on disposal of assets per f/s - 0Dividends not taxable under section 83 - 0Terminal loss from Schedule 8 - 0Depreciation in inventory, end of prior year - 0Scientific research expenses claimed in year from Form T661 - 0Bad debts - 0Book income of joint venture or partnership - 0Equity in income from subsidiary or affiliates - 0Contributions to a qualifying environment trust - 0Other income from financial statements - 0Funds from Dev - 1,817,102 1,817,102

- 0- 0

Other deductions: (Please explain in detail the nature of the item) - 0- 0- 0- 0

Total Deductions = 1,817,102 0 1,817,102

Recap of Material Deductions: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other deductions: (Please explain in detail the nature of the item) 1,817,102 0 1,817,102 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total Deductions exceed materiality level 1,817,102 0 1,817,102Other deductions less than materiality level 0 0 0Total Deductions 1,817,102 0 1,817,102

TAXREC 2


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4

56789

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A B C D E F

PILs TAXESTAX RETURN RECONCILIATION (TAXREC 3)

Shareholder-only Items should be shown on TAXREC 3 LINE M of F Non-wires Wires-only

ITEMS ON WHICH TRUE-UP DOES NOT APPLY Corporate Eliminations Tax

(for "wires-only" business - see s. 72 OEB Act) Tax Return0 Return

Utility Name: PowerStream Inc. - Richmond Hill Version 2009.1

Reporting period: 2001Number of days in taxation year: 92

Section C: Reconciliation of accounting income to taxable incomeAdd:

Recapture of capital cost allowance + 0CCA adjustments + 0CEC adjustments + 0Gain on sale of non-utility eligible capital property + 0Gain on sale of utility eligible capital property + 0Loss from joint ventures or partnerships + 0Deemed dividend income + 0Loss in equity of subsidiaries and affiliates + 0Loss on disposal of utility assets + 0Loss on disposal of non-utility assets + 0Depreciation in inventory -end of year + 0Depreciation and amortization adjustments + 0Dividends credited to investment account + 0Non-deductible meals + 2,951 2,951Non-deductible club dues + 0Non-deductible automobile costs + 0Donations - amount per books 3,015 3,015Interest and penalties on unpaid taxes 0Management bonuses unpaid after 180 days of year end 0Imputed interest expense on Regulatory Assets 0

+ 0Ontario capital tax adjustments + 0Changes in Regulatory Asset balances + 0

+ 0Other Additions: (please explain in detail the nature of the item) + 0

+ 0+ 0+

Total Additions on which true-up does not apply = 5,966 0 5,966

Deduct:

CCA adjustments - 0CEC adjustments - 0Depreciation and amortization adjustments - 0Gain on disposal of assets per financial statements - 0Financing fee amorization - considered to be interest expense for PILs - 0Imputed interest income on Regulatory Assets - 0Donations - amount deductible for tax purposes - 0Income from joint ventures or partnerships - 0

- 0- 0- 0- 0- 0

Ontario capital tax adjustments to current or prior year - 83,562 83,562- 0

Changes in Regulatory Asset balances - 0- 0

Other deductions: (Please explain in detail the nature of the item) - 0- 0- 0- 0- 0

Total Deductions on which true-up does not apply = 83,562 0 83,562

TAXREC 3 No True-up


4

5678

A B C D E F

Shareholder-only Items should be shown on TAXREC 3 LINE M of F Non-wires Wires-only

ITEMS ON WHICH TRUE-UP DOES NOT APPLY Corporate Eliminations Tax

(for "wires-only" business - see s. 72 OEB Act) Tax Return0 Return

Utility Name: PowerStream Inc. - Richmond Hill Version 2009.17475

TAXREC 3 No True-up


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23242526272829303132333435363738394041

424344454647484950515253545556575859

606162

A B C D E F GPILs TAXESCorporate Tax Rates Version 2009.1Exemptions, Deductions, or ThresholdsUtility Name: PowerStream Inc. - Richmond HillReporting period: 2001

Table 1

Income Range 0 200,001RAM 2002 to to >700,000

Year 200,000 700,000Income Tax RateProxy Tax Year 2002Federal (Includes surtax) 13.12% 26.12% 26.12% and Ontario blended 6.00% 6.00% 12.50% Blended rate 19.12% 34.12% 38.62%

Capital Tax Rate 0.300%LCT rate 0.225%Surtax 1.12%Ontario Capital Tax Exemption ** MAX $5MM 5,000,000Federal Large Corporations Tax Exemption ** MAX $10MM 10,000,000

Table 2

Income Range 0 200,001Expected Rates to to >700,000

Year 200,000 700,000Income Tax RateCurrent year 2001Federal (Includes surtax) 2001 13.12% 26.12% 26.12%Ontario 2001 6.00% 6.00% 12.50% Blended rate 2001 19.12% 32.12% 38.62%

Capital Tax Rate 2001 0.300%LCT rate 2001 0.225%Surtax 2001 1.12%Ontario Capital Tax Exemption *** 2001 MAX $5MM 5,000,000Federal Large Corporations Tax Exemption *** 2001 MAX $10MM 10,000,000

Table 3Input Information from Utility's Actual 2001 Tax ReturnsIncome Range 0 200,001

to to >700,000Year 200,000 700,000

Income Tax RateCurrent year 2001Federal (Includes surtax) 13.12% 28.12% 28.12%Ontario 6.00% 6.00% 12.50% Blended rate 19.12% 34.12% 40.62%

Capital Tax Rate 0.300%LCT rate 0.225%Surtax 1.12%Ontario Capital Tax Exemption * MAX $5MM 5,000,000Federal Large Corporations Tax Exemption * MAX $10MM 10,000,000

**Exemption amounts must agree with the Board-approved 2002 RAM PILs filing

***Allocation of exemptions must comply with the Board's instructions regarding regulated activities.

* Include copies of the actual tax return allocation calculations in your submission: Ontario CT23 page 11; federal T2 Schedule 36

Rates Used in 2001 RAM PILs Applications for 2002

Expected Income Tax Rates for 2001 and Capital Tax Exemptions for 2002

Tax Rates


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7273

7576777879808182

A B C D E F G H I J K L M N O PPILs TAXESAnalysis of PILs Tax Account 1562:Utility Name: PowerStream Inc. - Richmond Hill Version 2009.1

Reporting period: 2001 Sign Convention: + for increase; - for decrease 0

Year start: 10/1/2001 1/1/2002 1/1/2003 1/1/2004 1/1/2005 1/1/2006Year end: 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 4/30/2006 Total

Opening balance: = 0 11,830 11,830 11,830 11,830 11,830 0Board-approved PILs tax proxy from Decisions (1 +/- 0True-up Variance Adjustment Q4, 2001 (2 +/- 10,497 10,497True-up Variance Adjustment (3 +/- 0Deferral Account Variance Adjustment Q4, 2001 (4 +/- 1,333 1,333Deferral Account Variance Adjustment (5 +/- 0Adjustments to reported prior years' variances (6 +/- 0Carrying charges (7) +/- 0PILs billed to (collected from) customers (8) - 0 0

Ending balance: # 1562 11,830 11,830 11,830 11,830 11,830 11,830 11,830

Uncollected PILs

NOTE: The purpose of this worksheet is to show the movement in Account 1562 which establishes the receivable from or liability to ratepayeFor explanation of Account 1562 please refer to Accounting Procedures Handbook for Electric Distribution Utilities and FAQ April 2003.

Please identify if Method 1, 2 or 3 was used to account for the PILs proxy and recovery. ANSWER:

(iii) Column G - In 2003, the initial estimate should include the Q4 2001 PILs tax proxy and the 2002 PILs tax proxy. (iv) Column I - The Q4 2001 PILs tax proxy was removed from rates on April 1, 2004 and the 2002 PILs tax proxy remained. (v) Column K - The 2002 PILs tax proxy applies to January 1 to March 31, 2005, and the new 2005 PILs tax proxy from April 1 to December 31, 2005. (vi) Column M - The 2005 PILs tax proxy will used for the period from January 1 to April 30, 2006.

(2) From the Ministry of Finance Variance Column, under Future True-ups, Part IV a, cell I132, of the TAXCALC spreadsheet. The Q4, 2001 proxy has to be trued up in 2002, 2003 and for the period January 1- March 31, 2004. Input the variance in the whole year reconcilation.

(3) From the Ministry of Finance Variance Column, under Future True-ups, Part IV a, cell I132, of the TAXCALC spreadsheet. The true-up will compare to the 2002 proxy for 2002, 2003, 2004 and January 1 to March 31, 2005.

(4) From the Ministry of Finance Variance Column, under Future True-ups, Part IV b, cell I181, of the TAXCALC spreadsheet. The Q4, 2001 proxy has to be trued up in 2002, 2003 and for the period January 1- March 31, 2004. Input the deferral variance in the whole year reconciliation.

(5) From the Ministry of Finance Variance Column, under Future True-ups, Part IV a, cell I181, of the TAXCALC spreadsheet. The true-up will compare to the 2002 proxy for 2002, 2003, 2004 and January 1 to March 31, 2005.

(6) The correcting entry should be shown in the year the entry was made. The true-up of the carrying charges will have to be reviewed.

(7) Carrying charges are calculated on a simple interest basis.

(8) (i) PILs collected from customers from March 1, 2002 to March 31, 2004 were based on a fixed charge and a volumetric charge recovery by class. The PILs rate components for Q4, 2001and 2002 were calculated in the 2002 approved RAM on sheet 6 and sheet 8. In April 2004, the PILs recovery was based on the 2002 PILs tax proxy recovered by the volumetric rate by class as calculated on sheet 7 of the 2004 RAM. The 2005 PILs tax proxy is being recovered on a volumetric basis by class.

(ii) Collections should equal: (a) the actual volumes/ load (kWhs, kWs, Kva) for the period (including net unbilled at period end), multiplied by the PILs volumetric proxy rates by class (from the Q4, 2001and 2002 RAM worksheets) for 2002, 2003 and January 1 to March 31, 2004; plus, (b) customer counts by class in the same period multiplied by the PILs fixed charge rate components.

In 2004, use the Board-approved 2002 PILs proxy, recovered on a volumetric basis by class as calculated by the 2004 RAM, sheet 7, for the period April 1 to December 31, 2004, and add this total to the results from the sentence above for January 1 to March 31, 2004.

In 2005, use the Board-approved 2005 PILs proxy, recovered on a volumetric basis by class as calculated by the 2005 RAM, sheet 4, for the period April 1 to December 31, 2005. To this total, the 2004 volumetric PILs proxy rate by class should be used to calculate the recovery for the period January 1 to March 31, 2005.

will have to include amounts from 1562 and from 1590.

(1) (i) From the Board's Decision - see Inclusion in Rates, Part III of the TAXCALC spreadsheet for Q4 2001 and 2002.

(ii) If the Board approved different amounts, input the Board-approved amounts in cells C13 and E13.

(9) Any interim PILs recovery from Board Decisions will be recorded in APH Account # 1590. Final reconciliation of PILs proxy taxes

Please insert the Q4, 2001 proxy in column C even though it was approved effective March 1, 2002. If the Board gave more than one decision in the year, calculate a weighted average proxy.

PILs 1562 Calculation


PowerStream Inc.Account 1562 DispositionInterest Expense - Year/Quarter ending Dec 31, 2001

Richmond Hill Hydro Full yearOct 1 to Dec

31/01 Jan 1 to Sep 30 Total Note

per Financial Statements 1,401,595$ 353,279 1,048,316 1,401,595

Interest expense for Interest Adjustment 353,279$

Deemed interest 4,017,640$ 1,012,665$

Conclusion:Actual interest expense is less than deemed interest expense for the 4th quarter of 2001.

Notes

Split

2001



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